Tesla is set to report its fourth-quarter earnings, with Wall Street focusing on the company's 2024 guidance, margins, and demand outlook. Analysts are particularly interested in how Tesla will balance price cuts against profitability and the impact on its margins. A key question is whether Tesla will continue cutting prices or hold margins firm. There is also interest in Tesla's new delivery targets and Elon Musk's compensation. Tesla has reported lower costs per vehicle in Q4, citing reduced raw material and logistics costs, as well as benefits from the Inflation Reduction Act (IRA) credits, with the cost of goods sold per vehicle declining to slightly above $36,000. However, the company's shares fell over 5% after hours as Tesla missed earnings expectations. Factors contributing to margin erosion include reduced vehicle average selling price (ASP) due to pricing and mix, increased operating expenses from AI and other R&D projects, and lower Full Self-Driving (FSD) revenue recognition year-over-year due to FSD Beta wide release. Tesla's automotive margins have fallen to the lowest levels since Q1 2017 after reported price cuts last year. The company has warned of a slowdown in EV sales growth until it introduces a more affordable vehicle and has registered its first annual profit decline since 2017 as it grapples with shrinking margins.
Tesla warned of a notable slowdown in its vehicle sales growth this year, and reported a fall in fourth-quarter gross margin as it cut prices and offered incentives to boost demand. More here: https://t.co/vhxqu2Ynf8 $TSLA https://t.co/ZwEEvi6BOI
Tesla warned of a notable slowdown in its vehicle sales growth this year, and reported a fall in fourth-quarter gross margin as it cut prices and offered incentives to boost demand https://t.co/FntGBIcfi4 $TSLA https://t.co/KxdGrnDld7
Tesla shares drop on missed earnings and revenue in fourth quarter https://t.co/SIo7hOcZSm
Tesla registered its first annual profit decline since 2017 last year, the company disclosed in its fourth-quarter and full-year earnings report Wednesday afternoon, as Elon Musk’s electric vehicle goliath grapples with shrinking margins. https://t.co/HkGvcqirhv https://t.co/ow3tnXiH2p
Tesla warned that its EV sales growth could suffer until the company comes up with a cheaper vehicle. https://t.co/JJBDvk9NBM
TESLA SHARES ARE NOW DOWN OVER 5% AFTER HOURS AFTER TESLA MISSED EARNINGS ONCE AGAIN $TSLA https://t.co/rjZduqd7mF https://t.co/pUoDqm6BRq
My take on Tesla’s earnings @hedgeye https://t.co/a0mxEEpMRq
Tesla's $TSLA automotive margins fell to the lowest levels since at least Q1 2017 after widely reported price cuts last year. Read more in tonight's Closer: https://t.co/U3f7h7aJkF https://t.co/NU9TuGsCMA
Tesla gives the reasons for the erosion of Margin this past quarter. Helpful points: - reduced vehicle ASP due to pricing and mix - increase in operating expenses partly driven by AI and other R&D projects - lower FSD revenue recognition YoY due to FSD Beta wide release in North…
Tesla’s fourth-quarter earnings just dropped, so it’s time to grab your bingo card and play along ⤵️ https://t.co/JgQoPFoiRy
Tesla says it benefited from lower costs per vehicle in Q4, including lower raw material costs, logistics costs and IRA credit benefits. Cost of goods sold per vehicle in Q4 declined to slightly above $36,000, Tesla noted.
What do we have on the $TSLA earnings bingo card today?
Tesla Earnings Preview: 2024 Guide, Mass Model Rumors, Musk's Musings And Margins https://t.co/tasVQkU0q6
Tesla set to report fourth-quarter earnings after the bell https://t.co/KEMU9wkTL5
Tesla is expected to report a steep drop in fourth-quarter net income over the prior year https://t.co/DUHPTPH41E https://t.co/DUHPTPH41E
Tesla Q4 earnings preview: New delivery target, price cuts vs. profitability, and Elon Musk's pay in focus https://t.co/kHMpLhbm2z by @Pras_S
Here’s what analysts are expecting from Tesla earnings https://t.co/qpJPQP0O0r
Tesla Reports Earnings Wednesday And There's A Lot Of Negative Noise https://t.co/aRHVXopwJz
'Approaching maximum market negativity on EVs?' Here's what Wall Street expects from Tesla's 4th-quarter earnings report https://t.co/JPi9pIHW8R
Here's the key focus for Tesla earnings in wake of stock slide https://t.co/nL8PpmRRxV
Tesla Q4 earnings preview: New delivery target, price cuts vs profitability, and Musk's pay in focus https://t.co/3xa3QiEBfZ by @Pras_S
Tomorrow Tesla will be reporting its 4Q results and importantly giving its first glimpse of 2024 guidance with the Street anticipating what the margin and demand outlook will look for Musk & Co. over the next year. Keep cutting prices or hold margins firm? Key focus for Street